RBI to share FDI details with IB, RAW

The Reserve Bank of India will share FDI-related information with country’s intelligence agencies — IB and RAW — to check black money from entering the country. 

The decision was taken during a recent meeting of a government group, headed by Revenue Secretary, to check economic crimes. 

The move comes after Cabinet Secretariat — under whose administrative control Research and Analysis Wing (RAW) functions — expressed concern over companies in tax havens investing in the country, official sources said. 

During the meeting of Working Group on Intelligence Apparatus, representatives of Intelligence Bureau felt that it is important to have the information. It was decided that RBI should share with IB and Cabinet Secretariat, information on FDI which actually enters the country, the sources said. 

The move assumes significance as the government expects rise in FDI inflow to the country owing to its attempts to liberalise trade and promote ease of doing business. 

The FDI comes either through automatic route (which gets recorded by RBI) or through Foreign Investment Promotion Board (FIPB). “Even after FIPB has approved an FDI proposal, concerned government agencies will not know whether the investment has actually come into India. The only organisation which will know when the investment actually comes into the country is RBI. 

Hence, it was felt that they should form a database on it and share details with both IB and RAW,” said a senior official in the Cabinet Secretariat, requesting anonymity. The RBI has also been asked to consider displaying this information on its website, he said.